Consumption Taxes: The Higher the Better?

Many of our country’s greatest health detriments are caused by our own doing. Some people will always spend their money on vices. That isn’t likely to change any time soon, however, it doesn’t mean our government won’t continue to try and influence positive outcomes by adding a few extra dollars on the dollars.

Then the question that needs to be asked is can we lower the death toll from cigarettes and alcohol consumption by simply raising taxes? Excessive drinking leads to about 88,000 deaths each year in the United states. Cigarette smoking adds up to 480,000 related deaths per year. Combine the two and we’re at 560,000 deaths.Annually. Roughly the equivalent of the city of Albuquerque.

There’s a few things that we know for sure. Alcohol consumption is on the rise. It’s been steadily rising for years, while becoming more socially acceptable, it’s fashionable again, with binge drinking more popular than it should be. We also know that taxes on cigarettes work. Take Connecticut for example, with the second highest tax on cigarettes and the second lowest smoking rate in the nation. The same is true for state taxes on liquor; the higher the taxes the lower the consumption.That adds up.

So the notionis to curb consumption and reduce the number of related deaths. Make the vices more expensive, so that people work a little harder to pay for the fix. Perhaps then legalconsumption becomes a disease of the wealthy, while people with less cash in their pockets go underground to a more dangerous stream of resources. I admit that taxes are a good start to affecting the overall numbers. I also know that intervention works to redirect behavior and disrupt consumption that leads to addiction, and possibly death, regardless of your income bracket.

Data supports that increased taxes on tobacco and alcohol interrupt the pattern of over-indulgence. It is hard to conclude if taxes are the only, or most powerful, influencer. Trends, marketing, outreach campaigns and education can all play a role in how many people drink and smoke, how many quit or never start, and how many might die from either or both this year.

Maybe people are more inclined to use their vices in moderation with a steady hit to the wallet, and maybe people are less likely to die of consumption with high taxes in place. In my opinion, taxes or no, spending money on clean, local, organic food, a gym membership, and a pair of new running shoes is a much better investment.